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UPDATE: JMP Securities Reiterates On STERIS Corp Following Company HQ Visit


In a report published Tuesday, JMP Securities analyst David Turkaly reiterated a Market Outperform rating on STERIS Corp (NYSE: STE), and raised the price target from $58.00 to $65.00.

In the report, JMP Securities noted, “The stock has had a solid run (+~19% YTD), and no longer screens as a value play, in our view. However, nothing appears to be broken here, and there are several long-term drivers to focus on: 1) mid- to- high single-digit revenue growth and double-digit earnings growth should be sustainable, which compares favorably to other $3+ billion market cap device franchises; importantly, there has been some recent evidence of a gradually improving domestic HC capital environment (and any uptick in hospital admissions and surgeries also positively impacts STE), the V-Pro market should continue to grow, and STE's penetration should increase; 2) STE's specialty service division has ~20% market share today with further opportunities to expand organically and via M&A; and 3) in-sourcing should help both this year and next via previously identified targets mainly related to initiatives at two major facilities, but there could also be more opportunities from the company's three remaining large plants. Our revised price target reflects the same 18-19x P/E multiple applied to our initial CY16E EPS of $3.48.”

STERIS Corp closed on Monday at $57.00.

Latest Ratings for STE

Dec 2018Sidoti & Co.MaintainsBuyBuy
Nov 2018KeyBancMaintainsOverweightOverweight
Aug 2018JMP SecuritiesMaintainsMarket OutperformMarket Outperform

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